CEMENT SUPPLIES
INSUFFICIENT FOR NEEDS PROBLEM OP DISTRIBUTION Mr. E. P. Leo, who has succeeded Mr. Massey as president of the Board _ of Trade, states that since his appointment tho matter of the supplies o£ materials for essential building purposes has given him much concern. For a beginning, he has reviewed tho position of "cement, and is pleased to give a summary which will make this subject clear to tho general public. As shortage of cement is a factor in coßt of living and is delaying tho construction of essential buildings, including houses, the public as a whole has reason to hope that the cause of the shortage will be soon removed. , „ "One word," states the Minister, explains tho shortage, and that word is coal. Including coal required for power at some of the cement mills, it takes from half a ton to a ton of cqal to produce a ton of cemont. The checking of coal production by tho late _ goslow' scheme, and other interruptions, rented seriously on several very important industries. The result at the cemont mills is that, in tho aggregate, their output is barely half the amount that it could .1)0, with ease, if sufficient coal was available. "This coal shortage could not have happened at a worse time. The demand is abnormal by the fact that war conditions caused delay with much building enterprise, including residential houses. Tho extensive settlement . of returned soldiers on tho land haß also made an extra demand. Cement is urgently needed for the building of new dairying factories and for tho extension of existing factories- to deal with the increased supplies of milk from new settlements. Cement is, of course, the key to modern building operations. Cement is also linked up with the safeguarding of publie health, for much cement is required for the installation of water supplies and for sanitary work. The demand for «1l these purposes has expanded largely, Ixut with this demand so much above the former normnl level, the supply of coal lias been much below normal. Tf the cement companies could only obtain enough coal, probably they would be able to overtake tho demand for cement within a few months. "Tho shortage of cement was first brought 'under the notico of the Government in the early part of this year, and arrangements were then made by winch the cement companies agreed to observe a certain order of preference in the distribution, which was to be carried out bv the companies themselves. Events pToved that it was impossible, for the companies to arrange through their agents satisfactory distribution of the smaller quantities in localities remote from the cement works. Hence the Board of Trado arranged to undertake the distribution of all cement arriving for the Wellington, Hawkes Bay and Taranaki districts. This involves an
enormous amount of detail woTk, _ in which tho board is efficiently assisted bv advisory committees in. Gisborno, Napier, New Plymouth. Wangnnui, Va\merston North and Wellington (including the Wniraraiw). On behalf of tho board these committees make allotments to various users, on the merits of each case, subject to the board's approval. The board's system of fixation of prices and distribution ensures equitable treatment for the 'small man' as well as the I>ig man.' The- great guiding principle of the board is the essential character of the work requiring cement, and on that basis the rule is one of fair plav for various applicants. "In Canterbury, committees have not vet been set up. TheTe tho distribution is controlled by a representative ot tho board. Until recently the shortage of cement has not been so acute/ in Auckland and Otneo as in other parts of New Zealand, but during the last nvo weeks about £000 tons have been taken from Auckland for other districts, with tho result that Auckland is now feeling the pinch. The original arrangement for distribution by tho cement companies on a recognised order of prefer-, enco still holds for Auckland and Otago, but it is probable that circumstances will require an extension of the Wellington system (a co-operation of tho board and advisory, commitees) to tho whole .of the Dominion unless a rapid improvement in the supply of coal solves the problem automatically "Tho board's first task is to endeavour to allocate cement equitaoly for all districts throughout New Zealand, and thon comes a, complication of distribution in detail according to tho needs of users, for the Iward lias to act on a Btnct interpretation of the word A shortage of shipping is another handicap, and bad weather occasionally makes further 'trouble, for the hand'ing of cement can be dono only in fine weather. Every hitch that occurs makes more work for the board. • "As timo goes on and the demand for content grows more insistent, tho board's responsibilities with the allocations becoino more arduous. The stoppage or delaying of supplies for certain works, not absolutely essential, may cause certain hardship, but public duty obliges the board to restrict cement to essential, operations, because the supply is not nearly sufficient, even for essential purposes (which include the building or extension of State schools). • •■ "Regulations recently enabled the Government to require special permits for tho erection of buildings at an estimated cost exceeding but experience from the viewpoint of cement has proved that additional regulations will be necessary. A permit may be obtained for a building which is to cost more than .£3OOO, but unless tho Board of linde.is satisfied on evidence that the purpose is essential it cannot allocate cunent. Therefore it will be to the advantage of all concerned when the issuo of such permits is vested in the Board of Trade. Meanwliilo the board earnestly advises persons who have planned big building projects to defer action unri' supplies of 'coment are assured, for cement is- 6till very short, even for essential works. "To show that the price of cement has been kept at reasonable figures by tho board's control, there is the fact that tho lowest price for imported kinds is at least u ton higher than local prices. Even ait the comparatively high ■ charges of overseas manufacturers it is very difficult to obtain nny quantity. I The board hns tried to place orders m Hong-Kong, Australia, the Pacific Coast of America, and Great Britain, but with very little buccsss. Private enterprise is free to import as muoh cement as it can, and to •lontrol its uso here without restriction. ' "Though oircumstancea have obliged the board to agree to incnascs in price, the present quotation is much below tho charges hi other countries. Tho recent increases here were mainly due to the j raising of wages and to tho heavy cost of coal. The latest increase of 12s. a ton 1 for cement was wholly duo to a rise in l coal, for which the cost has gone as high as M 12s. Gd. in at least one inI stance. Before any increase in tho ! price of cement can bo passed on to tho J users, full documents, setting out the " reasons, have to be submitted to the " board, which decides the matter on the evidence."
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Bibliographic details
Dominion, Volume 13, Issue 233, 26 June 1920, Page 8
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1,188CEMENT SUPPLIES Dominion, Volume 13, Issue 233, 26 June 1920, Page 8
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